Omnitek Engineering (OTCMKTS:OMTK) versus Graco (NYSE:GGG) Head-To-Head Comparison

Graco (NYSE:GGG) and Omnitek Engineering (OTCMKTS:OMTK) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

93.9% of Graco shares are owned by institutional investors. 2.2% of Graco shares are owned by insiders. Comparatively, 45.5% of Omnitek Engineering shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Graco has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Omnitek Engineering has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500.

Profitability

This table compares Graco and Omnitek Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graco	22.72%	18.89%	15.47%
Omnitek Engineering	7.23%	-8.00%	10.57%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Graco and Omnitek Engineering, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graco	0	3	3	0	2.50
Omnitek Engineering	0	0	0	0	0.00

Graco currently has a consensus target price of $94.00, suggesting a potential upside of 14.02%. Given Graco’s stronger consensus rating and higher probable upside, research analysts plainly believe Graco is more favorable than Omnitek Engineering.

Earnings and Valuation

This table compares Graco and Omnitek Engineering”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graco	$2.19 billion	6.24	$486.08 million	$2.93	28.14
Omnitek Engineering	$1.02 million	0.30	-$170,000.00	$0.02	0.70

Graco has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering is trading at a lower price-to-earnings ratio than Graco, indicating that it is currently the more affordable of the two stocks.

Summary

Graco beats Omnitek Engineering on 13 of the 14 factors compared between the two stocks.

About Graco

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The Industrial segment provides liquid finishing equipment, paint circulating and supply pumps, paint circulating advanced control systems, plural component coating proportioners, and accessories and spare parts; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions. It also offers powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The Process segment provides pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. It sells its products through distributors, original equipment manufacturers, and home center channels, as well as to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.